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CSER Economy Watch June 2013

JUNE 2013

The Sacramento Region is adding jobs at a slower pace

 

Annual job growth slowed to 0.9 percent in May 2013 in the six-county Sacramento Region. This rate of growth, based on preliminary data, equates to a gain of 7,500 jobs over the past 12 months across all Nonfarm sectors of the regional economy. The recent dip moved the Region notably below the statewide and national averages and a full percentage point lower than at the same point in the previous year. Both sub-markets in the Sacramento Region added jobs on an annual basis with the core Sacramento market seeing nearly 95 percent of the gains and the Yuba-Sutter market posting a small job increase. Among the Sacramento Region’s five largest sectors that primarily drive job growth trends, only Government shed jobs in the past year. Professional & Business Services posted strong annual job growth in May 2013 at 4.5 percent with gains in temporary and job placement services as well as other administrative support activities. The Educational & Health Services sector grew by 2.1 percent in the last 12 months with job increases in both the health care and private education components. Consumer spending is driving annual job growth in both the Trade, Transportation, & Utilities and Leisure & Hospitality sectors with expansion in jobs within retail trade and restaurants and bars. While four of the large sectors continue to add jobs on an annual basis, the rate of growth has slowed slightly in three sectors, leading to the slump in overall regional job growth.

Statewide, annual job growth also dropped in May 2013 to 1.6 percent. Establishments in the state added 233,700 jobs to payrolls in the past 12 months. Nationally, annual job growth remained fairly flat in May 2013 at the same rate as California and reflecting a nearly 2.2 million-job increase. The SF Bay Area has seen annual job growth decline steadily over the past few months, falling 1.2 percentage points since the end of 2012. In May 2013, the SF Bay Area posted 2.2 percent job growth with a gain of 63,900 jobs in the past year. The Solano market also saw annual job growth fall with the May 2013 rate coming in at 2.3 percent (equating to a gain of 2,700 jobs). Stockton posted an opposite annual job growth pattern with an increasing rate of growth in the past few months. Stockton’s May 2013 job growth was 2.2 percent with a 4,100-job increase over the last 12 months.

 

Annual Job Growth

Annual Job Growth

 

  
Major Sector Annual Job Gains and Losses

Major Sector Annual Job Gains

 

The Region’s Manufacturing sector grew in the past 12 months

Five major sectors in the Sacramento Region added jobs between May 2012 and 2013. This includes four of the Region’s largest sectors, mentioned above, along with Manufacturing, which saw gains across both the durable and non-durable goods categories. In addition to Government, three other major sectors in the Region posted notable annual job losses including Information; Other Services; and Construction. The Construction sector has been variable over the past year with annual gains in five months and losses for the remaining periods. With a net gain of 7,500 jobs in the 12 months ending May 2013, Nonfarm employment in the Sacramento Region moved to 871,000, which tracks around the same employment levels seen in the year 2002.

California added jobs in six of the eleven major industry sectors over the past 12 months. Like in the Sacramento Region, the greatest gains were seen in the Professional & Business Services sector. Unlike Sacramento, the state added jobs in the Construction sector primarily as a result of increases in residential construction activities and specialty trade contractors. Statewide, the largest annual losses were posted in the Government sector. Only four major sectors posted job declines in the SF Bay Area between May 2012 and 2013 with Other Services seeing the most pronounced losses. The Professional & Business Services sector also experienced the largest annual job gains in the SF Bay Area. In the Stockton Market, only the Manufacturing and Information sectors shed jobs in the past 12 months while Trade, Transportation, & Utilities and Educational & Health Services posted notable job gains. The Solano market posted job gains or saw stable conditions in every major sector with the exception of Government. The Educational & Health Services sector added the most jobs in the past year within this market.
 

ABOUT CSER

The Center for Strategic Economic Research (CSER) is an economic research and consulting group specializing in applied research and strategy development in the regional economics and economic development fields.
www.strategiceconomicresearch.org

CSER is grateful for the support of the Signature Underwriter, UC Davis Health System, and Supporting Underwriters of the Quarterly Report, Cushman & Wakefield, Los Rios Community College District, Sacramento Municipal Utility District, Sacramento Works, Weintraub Tobin and Wells Fargo.

Editor’s note: The “News Digest” goes out every Tuesday morning and highlights our best stories, photos and videos from the week prior. Sign me up.
 

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